{
  "title": "Role of Debt Maturity Structureon Firm Fixed Assets During Sudden Stop Episodes: Evidence From Thailand",
  "publication": "IMF Working Papers, January 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/role-of-debt-maturity-structureon-firm-fixed-assets-during-sudden-stop-episodes-evidence-20163",
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  "summary": "This paper studies the detrimental effect of sudden stops on the growth of Thai firms' fixed assets. We focus on the fixed assets adjustment that firms undertake at times of financial constraints. We derive our results from balance sheet data for 284 nonfinancial Thai listed firms.",
  "sections": [
    {
      "heading": "Core finding",
      "content": "- The growth of Thai firms' fixed assets experienced severe declines starting in 1996.\n- Holding longer-term debt maturity structure mitigates adverse effects on firms' fixed-asset growth during sudden stop episodes.\n- In tranquil periods, firm profitability is the primary factor associated with fixed-asset growth."
    },
    {
      "heading": "Data and scope",
      "content": "- Sample: balance sheet data for 284 nonfinancial Thai listed firms.\n- Focus: fixed assets adjustment undertaken by firms at times of financial constraints (sudden stops)."
    },
    {
      "heading": "Empirical approach",
      "content": "- Regression analysis controlling for firms' characteristics and lagged dependent variables.\n- Examination of interactions between debt maturity structure, profitability, and sudden stop episodes."
    },
    {
      "heading": "Key implications and interpretations",
      "content": "- Debt maturity structure matters for firm resilience during financial crises:\n  - Longer-term debt maturity structure works in firms' favor during sudden stop episodes.\n- Different determinants across regimes:\n  - Profitability is the dominant factor for fixed-asset growth during tranquil periods.\n- Policy-relevant insight:\n  - Strengthening access to longer-term financing or encouraging longer debt maturity profiles can help firms better preserve and adjust fixed assets when facing sudden stops."
    },
    {
      "heading": "Subjects and keywords (as listed in source)",
      "content": "- Subjects: Balance of payments; Capital inflows; Consumption; Economic sectors; Financial statements; National accounts; Public financial management (PFM); Sudden stops; Transnational corporations.\n- Keywords: Asia financial crisis; balance sheet; Capital inflows; characteristics variable; Consumption; Financial statements; firm; Firm fixed asset; firm level; fixed asset growth; fixed assets adjustment; Global; nontradable firm; output firm; Short-term debt maturity structure; Structureon firm fixed assets; Sudden Stops; Thailand; Transnational corporations; WP.\n\nSource: IMF Working Paper — \"Role of Debt Maturity Structureon Firm Fixed Assets During Sudden Stop Episodes: Evidence From Thailand\" (authors: Hanan Morsy, Maria Pia Iannariello, Akiko Terada-Hagiwara).\n\n---\n\n Content in this bundle\n\n- wp0711\n  - wp0711 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0711 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/role-of-debt-maturity-structureon-firm-fixed-assets-during-sudden-stop-episodes-evidence-20163"
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    "Authors: Hanan Morsy, Maria Pia Iannariello, Akiko Terada-Hagiwara",
    "Published: January 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451865752.001",
    "The growth of Thai firms' fixed assets experienced severe declines starting in 1996.",
    "Holding longer-term debt maturity structure mitigates adverse effects on firms' fixed-asset growth during sudden stop episodes.",
    "In tranquil periods, firm profitability is the primary factor associated with fixed-asset growth.",
    "Sample: balance sheet data for 284 nonfinancial Thai listed firms.",
    "Focus: fixed assets adjustment undertaken by firms at times of financial constraints (sudden stops).",
    "Regression analysis controlling for firms' characteristics and lagged dependent variables.",
    "Examination of interactions between debt maturity structure, profitability, and sudden stop episodes.",
    "Debt maturity structure matters for firm resilience during financial crises:",
    "Different determinants across regimes:",
    "Policy-relevant insight:",
    "Subjects: Balance of payments; Capital inflows; Consumption; Economic sectors; Financial statements; National accounts; Public financial management (PFM); Sudden stops; Transnational corporations.",
    "Keywords: Asia financial crisis; balance sheet; Capital inflows; characteristics variable; Consumption; Financial statements; firm; Firm fixed asset; firm level; fixed asset growth; fixed assets adjustment; Global; nontradable firm; output firm; Short-term debt maturity structure; Structureon firm fixed assets; Sudden Stops; Thailand; Transnational corporations; WP.",
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